DoD Awards Northrop Grumman $24.8M for H-1 System Configuration Sets
Contract Overview
Contract Amount: $24,804,203 ($24.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-01-24
End Date: 2025-09-17
Contract Duration: 602 days
Daily Burn Rate: $41.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: H-1 SYSTEM CONFIGURATION SETS
Place of Performance
Location: WOODLAND HILLS, LOS ANGELES County, CALIFORNIA, 91367
Plain-Language Summary
Department of Defense obligated $24.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: H-1 SYSTEM CONFIGURATION SETS Key points: 1. Significant contract awarded to a major defense contractor. 2. Focus on specialized navigation and guidance systems. 3. Potential for cost overruns given Cost Plus Fixed Fee structure. 4. Limited competition raises questions about price discovery.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Benchmarking against similar navigation system contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited source selection. This lack of competition may have resulted in a higher price than could have been achieved through a competitive process.
Taxpayer Impact: Taxpayer funds are being used for specialized defense systems. The absence of competition suggests a potential for reduced value for money.
Public Impact
Enhances critical navigation and guidance capabilities for naval operations. Supports advanced defense technology development and manufacturing. Ensures operational readiness for specific military platforms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for scope creep
Positive Signals
- Supports critical defense systems
- Awarded to established contractor
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing of complex navigation and guidance systems. Spending in this area is critical for maintaining technological superiority but requires careful oversight due to high costs and specialized nature.
Small Business Impact
This contract does not appear to involve small businesses as prime contractors. Opportunities for small businesses may exist further down the supply chain, but direct subcontracting is not indicated.
Oversight & Accountability
The limited competition and Cost Plus Fixed Fee structure warrant close oversight to ensure costs are controlled and the final product meets specifications without undue expense.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition
- Cost Plus Fixed Fee contract type
- Potential for cost escalation
- Lack of transparency in pricing
Tags
search-detection-navigation-guidance-aer, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. H-1 SYSTEM CONFIGURATION SETS
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $24.8 million.
What is the period of performance?
Start: 2024-01-24. End: 2025-09-17.
What specific factors justified the limited competition for this critical system?
Justification for limited competition typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. A thorough review of the justification documentation is necessary to assess if these criteria were met and if alternative solutions were adequately considered.
How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns?
Effective management of a Cost Plus Fixed Fee contract requires stringent oversight of incurred costs, regular performance reviews, and clear communication channels. The government contracting officer must actively monitor expenditures against the estimated cost and ensure the fixed fee remains appropriate for the work performed.
What is the long-term strategic value of these H-1 system configuration sets?
The long-term strategic value lies in maintaining and enhancing the operational effectiveness of naval platforms equipped with these systems. Ensuring their reliability and incorporating necessary upgrades will be crucial for future mission success and national security.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6893621R0009
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 21240 BURBANK BLVD, WOODLAND HILLS, CA, 91367
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,481,919
Exercised Options: $30,481,919
Current Obligation: $24,804,203
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,001,094
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6893622D0028
IDV Type: IDC
Timeline
Start Date: 2024-01-24
Current End Date: 2025-09-17
Potential End Date: 2025-09-17 00:00:00
Last Modified: 2025-04-30
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